Rainbow Moving Average

The Rainbow Moving Average indicator shows multiple simple moving averages (SMAs) all at once for a specific time period. Each SMA is calculated based on the previous SMA and is color-coded in the chart.

Configuration Options

• Field: Price or combination of prices to use as the base for average calculations. Possible values include:
  • Open
  • High
  • Low
  • Close
  • Adjusted Close
  • HL/2 \( \left ( \frac{High + Low}{2} \right ) \)
  • HLC/3 \( \left ( \frac{High + Low + Close}{3} \right ) \)
  • HLCC/4 \( \left ( \frac{High + Low + Close + Close}{4} \right ) \)
  • OHLC/4 \( \left ( \frac{Open + High + Low + Close}{4} \right ) \)
• Period: Number of bars to use in the calculations.
• Underlay: Whether to display the curve behind the graph.
• Color Selectors: Colors to use for graph elements.
• Display Axis Label: Whether to display the most recent value on the Y axis.

Formula

\[Simple = MA = \frac{\sum_{i=1}^{n} Close_{i}}{n}\]